Conveyancing

Conveyancing is the legal process of transferring property ownership from seller to buyer. It involves preparing contracts, conducting searches, handling money transfers, and registering the new title—typically managed by a solicitor or conveyancer.

What Conveyancers Do

A conveyancer or solicitor handles all legal aspects of your property purchase or sale from contract signing to settlement.

Key responsibilities:

• Review and explain contracts of sale
• Conduct property searches (title, zoning, council)
• Liaise with seller's solicitor
• Arrange settlement (exchange of money and title)
• Register transfer of ownership
• Handle stamp duty payments
• Manage deposit and balance payments

Conveyancing Process (Buyer)

Step 1: Contract Review (Week 1)

Once you make an offer, your conveyancer reviews the contract of sale.

What they check:

• Property boundaries and title details
• Any easements, covenants, or restrictions
• Inclusions (what stays: curtains, fixtures, appliances)
• Settlement date and conditions
• Deposit amount and payment terms
• Building and pest inspection clauses

Example scenario:

• You offer $780,000 on a house
• Offer accepted, subject to finance and building inspection
• Conveyancer reviews contract, identifies:
  • Easement for water main across back corner of property
  • Settlement in 42 days
  • $78,000 deposit required (10%)
  • Air conditioning units included
• You review and sign contract within 3 days

Step 2: Searches and Enquiries (Week 1-2)

Conveyancer conducts comprehensive searches to uncover any issues.

Title search ($30-$150):

• Confirms seller owns the property
• Identifies mortgages, caveats, easements
• Checks boundaries and property description

Council search ($80-$250):

• Outstanding rates and charges
• Zoning restrictions
• Approved/unapproved building work
• Future development plans (roads, rezoning)

Water authority search ($30-$100):

• Outstanding water/sewerage charges
• Water main locations
• Future infrastructure plans

Other searches:

• Land tax certificate (if investment property)
• Plan of subdivision (for units/townhouses)
• Company title documents (older buildings)
• Contaminated land register

Example findings:

• Title search: Clean title, no issues
• Council search: $1,850 outstanding rates (seller to pay)
• Water search: Sewer main runs under driveway
• Outcome: Conveyancer negotiates for seller to pay outstanding rates before settlement

Step 3: Finance and Building Inspections (Week 2-4)

Your conveyancer coordinates with:

• Your bank (loan approval and settlement)
• Building inspector (approval to waive inspection clause)
• Seller's solicitor (any contract variations)

Example timeline:

• Week 2: Building inspection completed, minor issues noted
• Week 3: Negotiate $5,000 price reduction for repairs
• Week 4: Finance approved, loan documents to conveyancer
• Contract becomes unconditional

Step 4: Pre-Settlement (Week 4-6)

Conveyancer prepares for settlement.

Tasks:

• Calculate settlement figures (balance, adjustments, stamp duty)
• Order payout figure from seller's bank
• Arrange transfer of title documents
• Book settlement appointment
• Coordinate with your lender for funds release

Settlement statement example:

Purchase price:               $780,000
Less: Deposit paid:          -$78,000
Add: Buyer's stamp duty:     +$31,090
Add: Conveyancing fee:       +$1,650
Add: Searches:               +$280
Less: Council rates adj:     -$420 (seller pre-paid quarter)
Amount due at settlement:    $734,600

Step 5: Settlement Day (Week 6)

Settlement is the exchange of funds for property title.

Process (usually electronic):

• 10:00 AM: Conveyancer confirms buyer's funds received from lender
• 10:30 AM: Funds transferred to seller's solicitor electronically
• 11:00 AM: Seller's bank releases property title
• 11:30 AM: Title transferred to buyer
• 12:00 PM: Settlement confirmed
• Keys released to buyer

What happens:

• Seller's mortgage is paid out
• Seller receives balance of sale price
• Buyer becomes legal owner
• Title registered in buyer's name (within 7-14 days)

Step 6: Post-Settlement (Week 6-8)

Final tasks:

• Register transfer of title with Land Registry
• Send you final settlement statement
• Arrange for rates, utilities to be transferred to your name
• Archive transaction documents

You receive:

• Certificate of title (or electronic title reference)
• Copy of registered transfer
• Final settlement statement
• Keys to your new property

Conveyancing Process (Seller)

Step 1: Prepare Contract of Sale

Conveyancer prepares the contract before listing property.

Documents required:

• Certificate of title
• Recent rates notice
• Recent water bill
• Property survey/plan (if available)
• Owners corporation certificates (for units)
• Pool safety certificate (if applicable)

Cost: $800-$1,500 (paid before listing)

Step 2: Respond to Buyer's Enquiries

After offer accepted, buyer's conveyancer requests information.

Common enquiries:

• Proof of building approvals for renovations
• Copy of pest inspection (if seller obtained)
• Fixture list (what's included/excluded)
• Any disputes with neighbors

Step 3: Mortgage Discharge

Conveyancer arranges to pay out your mortgage at settlement.

Example:

• Sale price: $850,000
• Mortgage owing: $320,000
• Request payout figure: $321,450 (includes discharge fees)
• At settlement: Buyer's funds pay your lender $321,450
• You receive balance: $528,550 (less selling costs)

Step 4: Settlement

Conveyancer attends settlement, transfers title, receives proceeds.

Seller receives:

• Sale price minus mortgage payout
• Less: Agent commission (~$15,000-$25,000)
• Less: Conveyancing fees (~$1,200-$2,000)
• Less: Mortgage discharge fee (~$350)

Example:

• Sale price: $850,000
• Mortgage payout: -$321,450
• Agent commission (2.2%): -$18,700
• Conveyancing: -$1,650
• Discharge fee: -$350
• Net proceeds: $507,850

Conveyancing Costs

Buyer's Costs

Professional fees:

• Conveyancing/solicitor: $1,200-$2,500 (metro)
• Regional areas: $1,500-$3,000 (less competition)
• Complex properties: $2,500-$5,000 (rural, commercial)

Searches and certificates:

• Title search: $30-$150
• Council search: $80-$250
• Water search: $30-$100
• Plan of subdivision: $50-$150
• Other searches: $100-$300
• Total searches: $300-$950

Other costs:

• Stamp duty: $20,000-$60,000 (major cost, separate from conveyancing)
• Mortgage registration: $150-$300
• Transfer registration: $150-$300
• Bank fees: $0-$800

Total buyer costs:

• Conveyancing: $1,200-$2,500
• Searches: $300-$950
• Registrations: $300-$600
• Total: $1,800-$4,050 (excluding stamp duty)

Seller's Costs

Professional fees:

• Conveyancing/solicitor: $800-$2,000
• Contract preparation: Included
• Discharge of mortgage: $350-$800 (lender fee)

Certificates and documents:

• Section 32 statement (VIC): $300-$600
• Owners corporation certificate: $100-$350 (units)
• Pool compliance: $150-$250 (if applicable)

Total seller costs:

• Conveyancing: $800-$2,000
• Discharge: $350-$800
• Certificates: $100-$600
• Total: $1,250-$3,400

DIY Conveyancing

You can legally do your own conveyancing in most states—but it's risky.

Pros of DIY

• Save $1,200-$2,500 in professional fees
• Learn the process firsthand
• Full control over timeline

Cons of DIY

• Time-consuming (20-40 hours of work)
• Risk of missing critical issues (easements, encumbrances)
• No professional indemnity insurance (errors cost you money)
• Banks often require professional conveyancer
• High-stress process if you make mistakes

Example of DIY risk:

• You miss an easement allowing neighbor access through your backyard
• After settlement, neighbor exercises right to build driveway through your property
• You can't reverse purchase
• Cost of mistake: Tens of thousands in property value

Recommendation: Use a professional unless you're a lawyer or have extensive property experience.

Solicitor vs Conveyancer

Solicitor (Lawyer)

Qualifications:

• Law degree + admitted to practice
• Can handle complex legal disputes

Services:

• Standard conveyancing
• Contract disputes
• Litigation if sale falls through
• Estate/family law property matters

Cost: $1,800-$3,500 (higher than conveyancers)

When to use:

• Complex properties (rural, commercial)
• Disputes with seller/buyer
• Family law property settlement
• Estate sales

Licensed Conveyancer

Qualifications:

• Specialized conveyancing qualification
• Licensed by state authority

Services:

• Residential conveyancing only
• Cannot represent you in court
• Cannot handle complex legal disputes

Cost: $1,200-$2,500 (cheaper than solicitors)

When to use:

• Standard residential property (houses, units)
• Straightforward transactions
• Cost-conscious buyers/sellers

Example:

• Standard house purchase in Brisbane: Use licensed conveyancer, save $800-$1,000
• Rural property with water rights dispute: Use solicitor for legal expertise

Common Conveyancing Issues

1. Contract Mistakes

Problem: Contract contains errors or unfavorable terms.

Example:

• Contract lists wrong settlement date (30 days instead of 60)
• You haven't arranged finance yet
• Conveyancer negotiates extension to 60 days
• Saved: Potential forfeiture of $78,000 deposit

2. Title Issues

Problem: Searches reveal unexpected encumbrances.

Example:

• Title search reveals caveat from seller's ex-spouse
• Ex-spouse claims 50% ownership
• Settlement delayed 6 weeks while dispute resolves
• You're paying hotel accommodation and storage
• Cost: $6,000+ in temporary housing

Solution: Conveyancer identifies early, renegotiates settlement date.

3. Outstanding Debts

Problem: Seller has unpaid rates, taxes, or charges.

Example:

• Council search reveals $8,500 in outstanding rates
• Seller claims they're current (they're not)
• Conveyancer ensures rates paid at settlement
• Saved: $8,500 liability

4. Building Approval Issues

Problem: Renovations or extensions done without council approval.

Example:

• Seller added second story without permits
• Council can order demolition
• Property value drops $150,000+
• Risk: You'd inherit illegal building

Solution: Conveyancer's council search reveals issue, you negotiate price reduction or walk away.

5. Settlement Delays

Problem: Delays in finance approval or title transfer.

Example:

• Your loan approval delayed 2 weeks
• Settlement date can't be met
• Seller threatens penalty interest: $300/day
• Conveyancer negotiates 14-day extension at no penalty
• Saved: $4,200 in penalty interest**

State-Specific Differences

Victoria

Section 32 Statement:

• Seller must provide comprehensive property disclosure
• Includes all searches, zoning, easements
• Costly to prepare ($300-$600)
• Benefit: Buyer has full transparency before signing

New South Wales

Contract of sale:

• Less comprehensive than VIC Section 32
• Buyer typically orders own searches
• Benefit: Lower upfront cost for seller

Queensland

Form 1 disclosure:

• Seller discloses known defects
• Less comprehensive than VIC Section 32
• Buyer arranges own searches

Cooling-Off Periods

NSW: 5 business days (forfeit 0.25% of purchase price if you cool off) VIC: 3 business days (forfeit 0.2% of purchase price) QLD: 5 business days (forfeit $100 or 0.25%, whichever is greater) SA: 2 business days WA: No cooling-off period (auctions and private sales)

Example (NSW):

• Purchase price: $800,000
• Sign contract on Monday
• Cool off by Friday 5 PM
• Forfeit: $2,000 (0.25%)

Digital Conveyancing (PEXA)

Most Australian settlements now happen electronically via PEXA (Property Exchange Australia).

How PEXA Works

Traditional paper settlement:

• Physical attendance at settlement
• Cheques exchanged
• Paper documents signed
• 2-4 hours process

PEXA electronic settlement:

• Online platform
• Electronic funds transfer (instant)
• Digital signatures
• Title registered same day
• 30-60 minutes process

Benefits:

• Faster (same-day title registration)
• Safer (no cheques lost in mail)
• Transparent (all parties see progress)
• Cheaper (fewer fees)

Costs:

• PEXA fee: $150-$300 (split between buyer/seller or paid by one party)

Choosing a Conveyancer

What to Look For

1. Experience:

• Minimum 5 years in residential conveyancing
• Familiar with your state's process
• Positive reviews/referrals

2. Fixed fees:

• Clear, upfront quote
• Itemized disbursements (searches, fees)
• No hidden costs

3. Communication:

• Responsive (reply within 24 hours)
• Explain process in plain English
• Regular updates

4. Professional indemnity insurance:

• Minimum $2M coverage
• Protects you if they make mistakes

Questions to Ask

Before engaging:

1. "What's your total fixed fee, including all searches and disbursements?"
2. "How many properties have you settled in [your suburb]?"
3. "What's your average settlement timeline?"
4. "Who will handle my file?" (principal or junior staff)
5. "Do you use PEXA for electronic settlement?"

Red flags:

• Vague pricing ("depends on complexity")
• Slow to respond to initial enquiry
• No professional indemnity insurance
• Pushy sales tactics

Final Thoughts

Conveyancing is essential to protect your interests when buying or selling property—it's a small cost relative to the transaction size.

Key principles:

• Budget $1,500-$2,500 for buyer's conveyancing
• Engage conveyancer before signing contracts (get advice first)
• Choose experienced local conveyancer (knows area-specific issues)
• Allow 4-8 weeks for standard transactions
• Don't cut corners (DIY is high-risk)

Typical process timeline:

• Week 1: Contract review, searches ordered
• Week 2-3: Searches received, finance arranged
• Week 4: Contract becomes unconditional
• Week 5-6: Pre-settlement preparation
• Week 6: Settlement, keys handed over
• Week 7-8: Title registered

Cost breakdown for typical $750,000 purchase (NSW):

• Conveyancing: $1,650
• Searches: $420
• Stamp duty: $28,240 (separate, major cost)
• Registration fees: $280
• Total conveyancing costs: $2,350
• Total property purchase costs: $30,590

Conveyancing protects you from title defects, contract errors, and undisclosed issues that could cost tens of thousands—$1,500-$2,500 is cheap insurance for a $500K-$1M transaction.

Get referrals from:

• Your NIK Finance broker (they work with conveyancers daily)
• Real estate agent (but check for independence)
• Friends/family who recently bought
• Online reviews (Google, ProductReview)

A good conveyancer makes settlement smooth, catches issues early, and saves you money and stress—don't choose based solely on price.